in anticipation of a better first quarter because typically the first quarter is better than what everybody expects, but after that, is sort of to be seen? >> well, that's right. after that, depends on if the rally continues, what happens with interest rates, et cetera. so, what we're seeing here is not atypical. we just need the market to keep going in order for the banks, which are really levered plays, on interest rates, on the markets, we need to see where those go from here. >> in terms of the changes going on on wall street, a lot of it is a regulatory change, but compensation is a big one. everybody wants to change the way they incentivize executives and you actually think that what ubs has done is the better model in terms of using bonds. >> compensation is the big expense. many of then banks are not even earning their cost of capital yet in what's not a terrible environment. so, what you go for is compensation. it isn't just bigger than any other expense. for some of these, it's bigger than all the other expenses by

some measure. the banks have been taking it down, firing people. that's really a tragedy. tens of thousands of people. and some how we seem to miss this and the tragedy there. they've been taking down compensation and they've been deferring out compensation. now, moving toward bond compensation is actually a very good way of reducing risk. equity compensation, which is what we've moved more towards actually encourages risk, in a way, we've been going in the wrong direction. >> do you think, then, that we need to break up the banks and reverse the demise of that in some way? >> well, i think it's all -- look, there's a lot of talk about breaking up banks. i know bob robin said today not break up then banks. for all these wonderful, esteemed very accomplished gentlemen who were in banking some time ago, they're all coming out with an opinion and it's a little like watching an

alumni basketball game. which is really interesting to watch, but the score doesn't matter. because it's unlikely that absent another crisis, we're going to break up the banks. heck, we couldn't do money fund reform, which is pretty clear we need, given the risk there. so, the idea of, someone's going to wake up tomorrow, we're going to break up then banks, absent another crisis, is probably pretty unlikely. what we do need to really have a discussion of and we're not really as a country, is reducing the risk in the banks. is the risk rung out to a good enough degree? is there enough capital? whether you've got one bank today and then four little ones tomorrow, in the banking industry, have we taken out enough of the risk, have we put in enough capital? and that's not a discussion we're having head on right now. >> so, actually, as we're on the risk there, bob rubin talked about the risk may go from the banks to a hedge fund, an insurance company. just because it's outs of the bank doesn't mean it's gone. >> right.

>> so, what do you doe about that? >> well, and that's why you have that financial risk oversight committee, fsoc -- >> just throw some letters out there. >> yeah, you got it. that it's overlooking the risk in the system. and i think that's quite important. because it can skitter away. and, in fact, one of the thing us worry about with dodd/frank, the huge piece of legislation and the chances of getting every last thing are relatively slim, right, because this is an industry that can be innovative. now, in the last, you know, in the last cycle, innovation actually was just taking on more risk, right? the industry thought it was inknow nating, we thought we were innovating but it was just adding risk to it. so, the industry will find ways to grow the business and put on new business, put on new risk in places that page 337 of dodd/frank did not consider. so, that's why we need to take a step back and think about things like, okay, how are we

compensating bankers, for example, which is where a lot of the risk resides today. in a way that means they'll be less risk tolerant. >> i know the score doesn't matter in alumni basketball game, but who do you want to win? i mean, if you had to pick a side, would you say yes, break them up or leave them be? >> well, just like when i watch a unc alumni basketball game, you know, i love michael jordan, sam perkins was fabulous, james worthy, i mean, come on, these guys were great, right? >> right. >> so, what i always step back is watch the beauty of the game. but also, it really gets to, do we have, you know, do we have that risk where it should be, because i don't think anyone would disagree with me, going into the last downturn, the bankers, the regulators, the rating agencies, the analysts, the reporters, did not fully comprehend how much risk was in that banking system and therefore we did not have nearly enough capital.

now, do we have enough capital today? we know that 2% equity to assets, level rage ratio, was not enough. today, these banks are averaging 8%. what does that mean? >> much less risky -- >> you hope so, right? we think so. and, indeed, i was inside the banks when you heard, yeah, it looks like it's 4% or 2% or 8% leverage ratio. but really when you risk adjust it, it's much higher. well, guess what? that wasn't the case. as we found out. so, we hope today that it is and basil three is really driving towards it. but that's very complicate and we already know places where it's wrong. in fact, the plain old fashioned leverage ratio, that 2% or 8%, whatever it is, assets to equity -- equity to assets, was better to determine how banks made it through the downturn than the basil ratios. all the work done, all the fancy models, the old fashioned rev

rage ratio was better. we were very low percent, now we're at 8%. do we feel better? do you feel better? do you feel better? >> well, you do, because your an investor innen banks. >> well, i do. >> here's a question for you. so, what does that ratio mean? do we believe the banks are not going to, in any reasonable period of time, hopefully our lifetime, take a loss that is the equivalent of 8% of their assets. oh, right, except it's not 8% of the assets, it's 4%, 5%, because the financing will run away. do we feel better snr i think that's the discussion we should be having is that aggregate amount of risk and how well capitalized we are for it. >> sally, we're going to have to leave it there. >> four years to get her on. >> i know. hopefully within the next four you'll come back. do you feel better about the banks today? >> no. i feel better about the asset managers. we sort of addressed that at the top of the show.

there's some serious head winds on the horizon. i feel great about the fact that her north carolina tar heels will not make the tournament this year, where my georgetown hoyas will. >> oh. >> because the tar heels are just having an awful year. sal little's -- >> never coming back. >> she knows. but she knows. i speak the truth and the truth hurts. >> b.k.? banks? >> yeah, again, i think -- i'm not that comfortable with then banks. look at what their risk weighted assets are now. government bonds. all you have to do is look at europe to see what happens there. i don't know if you can ever get that level of comfort because you are talking about an event that 99.9% of the world can't see ahead of time. >> we saw it once. >> some people did. coming up next, david einhorn aims to help apple. karen's got the fine print. plus, two of our traders are hungry for a street fight tonight. find out what food stock has got guy and b.k. all riled up and

ready to step into the ring. later on a company that's under the radar, but definitely in your medicine cabinet. the boss of prestige brands is befting big on the consumer. stick around. [ male announcer ] with citibank it's easy for jay

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i think apple has done a horrible job. this cash hoard, it's just an absurd amount of money. any company that should pay an enormous dividend, apple is number one on the list. as a long timeshare holder, i really hope they do the right thing. >> karen has been banging the table on apple's cash hoarding for months, and today david einhorn went public with his plan to unlock shareholder value. >> apple has a problem, we think, which is, it has a cash problem. it has sort of a mentality of a depression, in other words, people who have gone through traumas, they sometimes -- and apple's gone through a couple of traumas in its history. they sometimes feel like they can just never have enough cash. >> apple came out with a statement today, reiterating the company's commitment to returning value to shareholders

and that sent the stock surging, right into the close. so, karen did some fine print here. what do you think? >> this is really interesting issue that david brings up. and there's the fine point of the issue proposal number two, that the board should rethink, keep the option of a preferred on the table. not have shareholder -- not recommend shareholders vote it down. however, einhorn is suing to have issues as separate. we think he will win on that point. and, really, this is a referendum on, will the board ignore shareholders or not? if shareholders say, board, keep this preferred in place, it's really saying to the board, it's giving them that message, we need you to address the cash problem. we want you to dom come up with plan. but if the board -- if they lose the vote, which i think they will, and then they don't do anything meaningful with the

cash, then we need some other steps and i think we need a very shareholder oriented shareholder on the board. this is me saying this, not david saying, put me on the board. as a shareholder, it's been so frustrating to have a board that's derelict in their duties of allocating their capital. they've built a great company but done a horrible job of being aloe kay or thes of capital. and that's one of their duties. >> right. i mean, the crux of all of this is that he's going to win. >> i think he's going to win. >> on proposal two. >> yes. >> but there are shareholders came out with statement, fully supports apple's statement to implement majority voting for the election of directors, going with apple on this against einhorn. >> they're saying, we support good, corporate governance. it was tricky or something worse, the way they put all issues in one proposal, which is why i think separating them is the right thing to do.

i still think -- the burden is actually much harder for apple. they've got to get 50% of the votes of all outstanding shares -- >> right. >> to support them. and not all the shares vote, particularly a retail-based company like this. most shareholders, they don't know what to do with it, vote on proposal two. so, the hurdle is actually quite hard for the company. even with this support, i think -- they need two-thirds of the vote. >> and that's why you think there's an einhorn put under the stock today. >> i do. i think it really focused it in. karen does a great job defending why this cash, her view on why this cash should have been put to work in one way or another, for the last several years, and hasn't been, and mr. einhorn to be brought to it as he ntion appeared on multiple networks, making this case today. >> all right, let's move on here. general mills soaring to a record high today. the cereal making shaking off concerns of gross margin pressure in the second half of 2013 due to food inflation. we have a straight fight here. guy is our bull.

b.k. is the bear. you have 90 seconds total to duke it out. so, guy, kick it off. >> bulls first. >> yeah. >> listen. i can't eat their products but i loved the stock for awhile. beeks will speak to gross margins, i'm going to speak to operating margins, which are improving. i think that's very important. favorable. e. compared to kellogg's. their cheaper than kellogg's. look at their international growth. i think that number is going to continue to trend in that direction. so, they're diversifying. they've had a tremendous run. >> b.k., bear. >> i'm going to pick up on that kellogg's comment. on wednesday, they said their peers are probably going to see some margin pressure. they're looking at 5% food inflation, or at least cost inflation, and so, that has me concerned for general mills. then, i'll go back to the international growth. in their revenue, 27% revenue growth in europe. i don't think that's sustainable. philip morris talked about how they can't get revenue growth in europe.

if you can't sell an addictive product and get revenue product, there's no way you're going to sell cereals and get revenue growth. therefore i'm a bear. >> listen. coa cogent. that's what makes markets. that's the essence of this business. >> capitalism. >> that's why we have to go to our panel to the left. surround that trade. steve grasso. >> surround it. >> dr. j? where do you cast your vote? >> well, i think if indeed the consumer is feeling strapped somewhat by the payroll tax going back in, being implemented again, then i think that hurts a lower end product like a cereal much more than it does the higher end products, so, i guess i'm going to side with the bear. >> way to go. >> victory for brian kelly. >> that's it? you don't get -- >> no, i decided. >> get sallie back here. >> she's going to love you after that hoya comment. nice. >> she'll never come back again. all right. let's go to brian sullen and

you're taking a look at how options traders are playing gis. >> i think b.k. is short-lived on the victory speech here. if you look at the option activity today, we saw a buyer, 500 calls, the april 43 calls, paying 54 cents, so, the option trader seeing general mills trade to the upside, you know, 5%, 10% here, fom lowing their earnings report coming up in march. sort of an earnings play. bull activity here. and have to side with the new warren buffett here, he's outperformed the s&p for the last 25 years. he likes cereal names. specifically post. but general mills very similar. i'm on guy's side here. i'm a dividend lover here. general mills is one of those stocks. >> tie. >> thanks, brian. >> well, you know, the markets are the ultimate arbiter. >> oh, okay. >> we're going to fast fire you guys if you're wrong. you just wait. more options action every friday, 5:00 p.m. eastern time on cnbc. coming up next, linkedin

making a monster move. bring you the latest developments, plus, online shop-a-holics beware. we've got a special report on the new way retailers are making money by tracking your every move on the internet. and later on, one auto stock tops the tape today, but should you ride along with this rally? much more "fast" straight ahead. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves...

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[ engine turns over ] [ male announcer ] we created the luxury crossover and kept turning the page, writing the next chapter for the rx and lexus. this is the pursuit of perfection. welcome back to "fast money." we are live in times square. let's head to an afterhours move action. julia is monitoring the linkedin conference call. >> there's been a lot of talk about mobile and how their mobile apps are really working.

the company says that nearly 20% of job views and 30% of job viewers came from mobile. and about -- 27% of unique visiting members came through their mobile app. that means mobile is really driving traffic. a number of the changes they made in the past quarter, like a new profile is having a big impact. the profile has driven the number of members updating their profile double from a year ago. also said there was an eight times increase in traffic to the linkedin today, so, that's updated information every day, that's eight times, massive increase. they are feeling very good about that. the stock is trading up. melissa? >> julia, thank you. guy, you've been a big fan for a long time. >> you and finerman's final print, i remember the show you guys gaffawed at me -- >> that's every show. hard to remember a specific time. >> listen, i understand, 90 times forward earnings, the valuation is stupid. but look at this -- >> i have 171 times forward,

but -- >> doesn't really matter. >> once you are over 50, it doesn't make a difference. this quarter -- it's a remarkable quarter. i'm not saying go buy it tomorrow at 135 -- >> when would you buy it then? >> well, see, now you are late in the game here. we like this one, it had a 103 handle. i'm not so sure now. but the stock, you play from the short side, it's going to work some time, but not yet. just mark my words on this. like netflix. the same thing. people try to fade it at $150 and now the stock is -- it's the same situation. don't play this from the short side. >> doc? >> fair amount of folks were receiving the 140 calls. trading just below that level right now. 135 and 140 calls, they were actively selling those today. buying the lower strikes than that. so, in other words, they are saying, it tops out right around where guy, so, you are not always wrong. >> not always wrong. >> most of the time. >> nice. all right. ever get the feeling that you are being watched? sites are keeping tabs on you while you surf the web. and some investors are making

big money on this technology. cnbc's jon fortt's got the story. >> melissa, yeah. this is big data meets marketing. it's huge. value click took out 18 months ago, aol just took out buy site in december. and, really, this is a huge trend, especially with facebook coming down the track. check it out. it's the holy grail of online advertising. what if there were a way to make display ads as effective as lucrative as the search ads that made google a juggernaut? josh mcfarland thinks his startup is finding a way. it's an old idea made new. say i'm looking for an internet-connected scale. they know i'm here, the prices i'm looking at, how long i've been looking, so, when i get distracted, i wonder away from the site. they can find me later and show me a best buy ad for exactly the

product i was looking at. >> today, we can do a one to one matching of a potential shopper and exactly the products we think they're interested in, with exactly an ad that will show to them at the right time. >> he's so confident his network works that he put skin in the game. they only get paid on commission when targeted customers come back and buy. it's a space that's only going to get hotter in the era of big data. >> so, this idea around customer-powered, sort of data-powered marketing applications is relevant to display ads and other marketing applications. >> about a half a dozen other players in this space, as well. the addition of the facebook exchange is kind of evening the playing field with google's double click. really hot space, you guys. back to you. >> is it for sale, jon? >> well, they want to grow the company, make it even bigger. so, , they're working with

tier one advertisers. they're not saying that they're for sale right now because they're growing pretty fast, but i'm sure they wouldn't be opposed to the idea. >> are you doing a lot of on the ground research on retargeting at that golf course? >> absolutely. i plan on retargeting quite a few golf balls as soon as i -- no, i'm kidding. i'm a horrible golfer. but you know, "squawk box" will be here in the morning from pebble beach, gorgeous. i'm sure you guys are a little jealous. the weather here slightly better than the east coast right now. >> snowstorm barrelling through the north -- yes. >> yes. >> rub it in. >> stay safe and warm. >> clint eastwood will be one of their many guests on "squawk box." going to be a great show. in terms of trading this? obviously, this will make it much more effective for companies to actually sell. >> it will. i certainly think amazon could benefit from something like this. i know when i look at something online and amazon, later on, i get an e-mail from them. that's one way to play it or yahoo!. though, i find the whole thing a

little creepy. >> it is kind of creepy. >> they are following me around. a great business idea but personally find it creepy. >> yeah. privacy's going to be a bigger and bigger issue. we talked about internet security, because of the hacking that went on to "the new york times" and various government agencies recently. so, these guys do save all of the searches you do, folks. and to the extent that it's going to be used to target ads at you, i think, some of us will appreciate that and some of you will feel very funny when those ads start popping up. >> depends on what you're searching for. all right. >> what's that? i've never bought anything -- i don't search for anything. >> i'm not surprised. >> you know what? the crack staff in ec coming to get them, man. >> all right. got to take a break here. it is the under the radar company that is riding clear eyes all the way to record highs. cominging up, the boss at prestige brands.

he'll reveal his plan for staying on top of the game. stick with us.

welcome back to "fast money." i'm josh lipton.

some news from s&p. s&p saying that pvh will replace big lots in the s&p 500. s&p saying big lolgts has a market value below $2 billion. the changes will be made after the close of trading on a date to be announced. melissa? back to you. >> thank you, josh. prestige brands surging to record highs on the strength of its third quarter earnings. let's take a deeper dive into the consumer staple sector. shares are up more than 200% since you took over the helm at the company and you join us in another cnbc exclusive. thank you for coming by. >> thank you for having us. >> what's been the trend in the front end of the drugstore that we've seen so far since the close of the quarter? >> well, i think you're seeing this is an incredible cough, cold season, so, i think for the front end, those products have really taken off for the

retailer. >> have we seen the same momentum? cvs indicated that momentum slowed in the last two weeks, as flu season may have stabilized at this point. >> i think it's a little too soon to tell on that. we still have four to six weeks left in the season to see how it plays out. >> in terms of the overt the counter brands, you can find generic ones, as well. have you seen that impact at allen you? >> no, actually, just the opposite. we've increased our marketing spend significantly. three years ago, before -- when i came, we spent 10% of our sales against marketing. today, we're spending 15%. and in these products, otc, one of the reasons we believe it's very strong from a branded standpoint is, consumers that put products in their body, their eyes, those sort of things really want branded products, not generics. >> really. you felt no impact whatsoever through the talk about the

fiscal cliff or even now -- that's not a concern for you? >> we felt about three years ago when the economy, three, four years ago when the economy really slowed down, you felt it swing to private label but it's really swung back. >> you made a deal to acquire more consumer brands from another company. is there anything in terms of areas of products where you would want to beef an area up? >> well, we look to build platforms. whether it's in pediatrics or oral care, so, we look at all sorts of brands out there that we help think can build platforms with our retailer and with consumers. >> what are those brands? what stables would they be? >> in pediatrics or it could be in oral care or it could be in digestive. >> are you actively in the market for those? >> we always are. we're going to be very aggressive and disciplined. >> matt, thank you for coming by. >> thank you. >> b.k., where do you go to trade some of these brands? you go to prestige brands or the

drugstores? >> prestige brands, the stock's been on fire. certainly, that's one place you can go. the other obvious place is cvs. $50.90 seems to be decent support here. let's call it $50.75 as your stop. perhaps with the digestive stuff, you might go to jack in the box, as well. >> did you miss that? >> no, i wish i was -- i was so focused -- >> that was a -- >> this is -- nice job by beeks. >> nice slip. >> five, six years ago, pfizer sold to j and j and fleeced them. if you don't think pfizer wants to get it back at some point, you're mistaken. i'm not saying they're going to get bought, but this stock, though it's had a tremendous run, still goes higher. majority of retailers toppi topping, and it's interesting, the stock prices didn't necessarily match up, but macy's was a big winner. >> macy's was a big winner.

very pleased to see the same store sales numbers. i hoped macy's would trade higher, but you don't need to chase it right here but i'm staying long. >> which retailer do you like these days, doc? >> i always, mel, in the first two month of 0 a new year, i love tj max. they get a lot of what didn't sell elsewhere. they didn't take the risk on that merchandise, instead, they take it in and they sell it out at big profit. so, stock's around $45, i think, give or take right here. i belt it pushes towards 50 over the next 30 to 60 days. >> interesting, the seasonal take on tjx. i like that. let's play the good, the bad and the ugly, tonight, starring brian kelly. first, the good. at the beginning of the beer, b.k. was looking for japan for a trade. take a listen. >> one thing we learned today is that the federal reserve is not going to be as aggressive as the bank of japan. short the yen. >> nice call to short the yen.

etf up 14% since then. b.k.? >> yeah, i mean, being short the yen is probably one of the best trades for the next year or two. it's a little extended here. wait for a little bit of a pull-back and get back in. >> now, onto the bad. i a couple weeks after his yen trade, b.k. made a call on verizon. >> trading down in sympathy with apple and the order cuts. i would stay away from this name for right now. a lot of people were in this name as a bond proxy to get that 5% yield. if you get a risk on environment, i think people start move into more sexier names other than verizon. >> well, verizon shares are higher. sexier, perhaps. >> perhaps my definition of sexy is different than other people, i guess, because -- >> you can go so many places with that, but -- >> anyway. i still think, against 45, you

can try to short this. that seems to be the resistance. but if it breaks through there, b.k.'s going to be wrong again. >> the ugly there was his grammar. more sexier? is that like more bigger? >> where is the ugly? what's the ugly? come on! ah, the ugly. >> you look good as a postman. >> wow. i have saturdays off now. >> you have to deliver packages. >> oh. all right, coming up next, jane wells tells us what is up on the west coast. jane? >> ah, well, actually, crazy out here today, melissa, if you are following the news, and up next, we're going to talk about all the ways to follow the news, and the ultimate sign that the housing market has turned around. that's after the break. but we can still help you see your big picture. with the fidelity guided portfolio summary, you choose which accounts to track

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welcome back to "fast money," i'm josh lipton. we are watching coinstar in the afterhours. and it is ugly. coinstar operator of red box video rental kiosk says fourth quarter profit fell 27%, missed on the top line. more importantly, though, the outlook. coinstar now expecting current quarter results below what the

street hoped for. incoming ceo tells dow jones that a u-shaped recovery is coming for coinstar, but at least tonight, investors not willing to wait for the turnaround and headed for the exits. that stock down about 8% right now. melissa? >> josh, thank you. and doc, i guess it depends on where you think coinstar is in that u. >> yeah. >> i was hoping more for a v-shaped recovery. full disclosure, i'm short puts in this name. i shorted puts at the 45 and 40-put strike. they're still okay so far. but the stock is down to roughly $48, $47.70 in the afterhours. i think when you team them up with verizon, which they have done already, but i this i the marketing to the 144 million verizon people, people that have contracts with verizon, i think that's going to be huge for these guys. i think the stock is back to $60 by june. o'reilly automotive speaking

8%. reporting record same-store sales last night after the bell. so, guy -- what do you think? >> the quarter was very good. their guidance for next year was very good. but i happen to think that the runup today was a little too much now in the name. though, the whole space has done great. auto zone, o'reilly, peter paul and mary one, what's that -- >> pby? >> pep boys? >> an, to me is the name that's done very well. if i had to buy one in the space, it's auto nation, an. >> all right, from mobile devices to medical marijuana, we've got you covered in the west coast wrap. jane wells joins us from the best coast. >> melissa, i have three mobile devices. one, two, plus a kindle at home. cisco sails in four years, there will be more mobile devices on earth than earthlings. $7.6 billi7 7.6 billion people, 10 billion

devices. >> i have two devices. i have two. >> what about mobile phones? >> this is great for the trade. and it's great, i would think, for the championship makers who supply these guys. >> as well. it is good for something like a qualcomm, that's probably the place you want to go with this one. they would do very well. i'd like at an arm holdings, as well. >> marvel, just because some of the other ways to communicate other than cellular networks and so forth, some of the wifi. >> got to break in here. i want to go to phil lebeau. braexi breaking news on boeing. phil? >> melissa, as many expected, the faa is lifting the grounding of 787 dreamliners for test flights. this is for test flights only. this is not a complete lifting of the grounding that the faa put in place three weeks ago. there are restrictions and conditions that will go along with the test flights. many of those are what you would expect in terms of the personnel that can be on board. they have to make specific

checks of the batteries, the cables that hook up to the battery, they have to monitor the battery during the flight. but this is an important development because boeing believes the next step towards resolving the situation with regard to these lithium ion batteries is testing them out in flight. and testing out possible solutions as they work towards those solutions in flight. so, again, the federal aviation administration has lifted the grounding of boeing 787 dreamliner, but again, it is for test flights only. this does not change the grounding when it comes to dreamliners being flown by airlines. guys? back to you. >> phil lebeau, thank you for keeping us posted on the developing story over at boeing. does this change at all your view of boeing stock and whether or not it is -- have we reached the point where the fear in the stock is fully there and priced in and now we're coming out of the tunnel so to speak? >> potentially. we still don't know what the problem is. and i guess there's still that problem for headline risk of, is

this a production problem, what are they going to find when they do the tests and will they have to go back and retro fit their production line? >> so no? >> no. >> all right, jane, back to you. sorry to interrupt there. >> no, that's all right. huge 787 jobs here on the west coast up in washington, so, it's a big story we're watching, as well. the pentagon, meantime, saying two ships will not be going to the persian gulf to save money, so, you'd think that would hurt shares of the defense stocks involved. nope. the uss truman and the uss gettiesburg both ships are staying put, yet shares of both companies moved up today. so did other defense names, except lockheed. goldman says, quote, we do not believe the market is materially pricing in the risk that sequestration will occur march 1st, melissa. >> you think in the dfx, just a few points away from its record high. >> yeah, and these stocks, jane mentioned lockheed martin, a tremendous run, up to 96. it's pulled back nine or ten,

so, i'm still a big believer. general dynamics up a percent or so today. out of all of them today, i think lmt is the most interesting right here. >> jane? >> the ultimate sign of a housing recovery. barbie, the only blond older than i am, is seller her dreamhouse for $25 million on trulia. josh altman is her agent. the home covers 8,500 square feet, but that's a lie. i know this. it's only six square feet. only waist high and it's missing some walls. >> how will he fit in there then, jane? all right, jane, thank you. >> bye. >> okay. what? >> love jane wells. >> did you play with barbie dolls? >> no. actually, i did. i had a ballerina barbie and i ripped the crown off and created a hole on her held and i didn't play with her anymore. >> lobotomy barbie. >> anyway. you tweeted them, so we're trading them.

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welcome back to "fast money." you tweet it, we trade it. let's get to some of our trewee. guy, this is for you. herald. >> that's been a name we've loved for some time. it's pulled off a little from the all-time high. i liked it at 102, i like it even more at 96. >> all right, roger tweets to karen, i own bac, $10 jan 2014 calls at a buck. sold half. what would you do with the other half? >> playing the leaps. i love that, thinking a little more long-term. i would -- we are long bac, but if you are feeling like, you know what, i want to take some money off the table, you don't have to sell those, you can sell upside calls against it, maybe look at the 15s, 2014, the 15 strike, create a call spread. that's what i'd do. >> roger has his answer.

b.k. >> that's me. >> is the whole rush to 14,000 a bubble? >> mr. corleone -- >> better get this right, beeks. >> horse head in your bed. >> maybe it his daughter's wedding. i can do whatever i want to. since we're on twitter, i'm going to answer you in a very short way. #yes. this is a bubble. that doesn't mean it can't go higher. it doesn't mean that we're not going to get another leg higher. it's going to start to feel to me that we might get another leg higher there, probably get to the 1550 level that guy has talked about for several months now. >> dr. j? >> yes. >> zach tweets to you, discuss thoughts on netflix now that the post office is closed on saturdays. major hurt or not so bad? >> i don't think it hurts them at all, really. because they've obviously been trying to wean people off of delivery of dvds anyway. i think more and more of us are

going that way. that's why coinstar's down in the afterhours, obviously. and i think the streaming content, more and more people gravitating over to that, melissa. i this they's just a great way to go and they have a very high yield and there's beeks, who will be delivering five days a week. >> a lighter load. >> packages still deliver -- >> is it a package, though? >> you said it was -- >> for netflix, it will effect them, but b.k. will still have to, who on saturday, delivering packages. >> what can you do? >> i'm going to throw this out there and i'm going -- karen carpenter, one of the great voices of all-time. and the girl could drum, too. huge carpenter fan right here. >> where did that have to do with anything? >> that was -- listen to the song! throwing it out. there's nothing random about what i do. what did you buy me for valentine's day, by the way? >> what do i usually get you? >> oh, really? i can't say that. >> nothing again? >> can't say that on tv. >> nothing! >> all right, first must've

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...people noticed. ♪ the all-new cadillac ats -- 2013 north american car of the year. ♪ for a limited time, take advantage of this exceptional offer on the all-new cadillac ats. time for the final trade. beekers? >> you know, phillip morris hada great day. >> guy? >> we street fought about this

name the other day, but this new blackberry, bbry, look at that sucker go. watch. >> karen? >> i'm sticking with the same as my opening trade, an hour later, i still want the same thing. apple. >> doc? >> i can't even say it. >> so don't. >> but that's what these guys do. >> whatever that is. >> june 1750 calls, people were buying those aggressively today. i joined them. >> all right, i'm melissa lee. thank you for for june 1750 ca. i joined them. >> see you tomorrow. we've got the ceo of aol. "mad money" starts now. i'm jim cramer. welcome to my world. >> you need to get in the game. >> going out of business and he's nuts! they're nuts. they know nothing. >> i always like to say that there's a bull market somewhere. >> "mad money," you can't afford to miss it. >> hey, i'm cramer. welcome to "mad money." welcome to cramerica. i'm just trying to save you a

little money. my job is not only to entertain you, but to teach and coach you, so call me at 1-800-743-cnbc. what the heck do people want out of a company? what do people want out of a stock? how come you're not asked that company when an activist is suing the best performing company of our lifetime? on a day when the nasdaq lost .11%? let me set the stage for people who may not be up on what's happened. before i answer these incredibly important questions i just laid out, this morning david einhorn an excellent hedge fund manager announced he's seeing apple because they wants to block a suggestion of him. i said he says, that would aggressively return capital to its share hordes. ihorn want to stop them from amending their charter so he says it can't eliminate this possibility of offering a preferred security that he believes could give shareholders

some major consistent return on investment. rather than the common stock of which he hes frankly needs a little juicing. let's put it that way. he thinks it can do that. einhorn said this morning, while apple is a quote a phenomenal company, creating iconic products that consumers around the world love, end quote, he's not happy with the way apple manages the finances. he wants apple to to more with its $137 billion cash than it does right now. which is to pay a dividend of more than $10. yet, the stock has got a 2.3% yield. not high enough to stop any decline. on the other side is apple itself. which while it's generated a 1s for return over the last year, versus a 14% return for the s&p, that's underperformance, has given you 137% return over three years versus a 50% return for the s&p and most important, a 6,000% return -- you heard me right, a 6,000% return versus the s&p 118% performance in the

last two years. that long term success has enabled apple to earn all that cash that's now bringing this cause of action. a cause of action that seems entirely baseless to me. apple said that the amendment that it's offering in its proxy would not prohibit what einhorn wants, that preferred security. if anything it's a statement that tells you that the company seems wide open to all suggestions. frankly, it gives you tremendous anticipation that something can happen with that cash. as more pro shareholders than einhorn indicated with the incendiary lawsuit. apple has been able to give you the amazing return because it's followed the dictum suggested by the late steve jobs. if you produce the best products which arguably apple has done, everything takes care of itself. that's something that's resonated throughout much of steve jobs' biography about walter